Monday, February 1, 2010

What is meant by 'Value Chain Planning'?

Oracle renamed its Advanced Planning Suite to 'Value Chain Planning'. The first thought which striked to me was to find out the source of inspiration for this decision. Then I came across following reason mentioned in one of the blog, thought of putting for you guys:
Michael Porter popularized the word ‘Value Chain’ to characterize the chain of activities involved in producing and selling a product causing its value to increase. Value Chain Planning is an extension of this concept. We recognize holistic planning with synchronized strategic and tactical decisions is a prerequisite for optimizing the value chain and hence this was termed as ‘Value Chain Planning’